Southern Copper Jumps 5.04% In Two Days As Bullish Technicals Target 103.64 Resistance

Southern Copper (SCCO) rose 3.78% for two consecutive days, gaining 5.04% over the period to close at $100.93 in the most recent session. This analysis examines technical indicators to evaluate potential price trajectories.
Candlestick Theory
Recent candlesticks reveal a bullish reversal pattern. The session on 2025-09-02 formed a hammer (low: $92.95, close: $97.25), signaling rejection of lower prices, followed by a strong white candle on 2025-09-03 (open: $98.40, close: $100.93) confirming bullish momentum. Key resistance sits near the $101.65–$103.64 zone, aligning with the yearly high of $103 (2025-07-08) and Fibonacci confluence. Support is established around $96.50–$97.25, where multiple swing lows and the 50-day moving average converge.
Moving Average Theory
The 50-day moving average (95.10) slopes upward and remains below the current price, confirming short-term bullish bias. The 100-day (94.20) and 200-day (92.80) averages trend neutrally. The golden cross (50-day above 200-day) formed in May 2025 and persists, supporting a structurally positive medium-term outlook. Consecutive closes above all three averages reinforce bullish control.
MACD & KDJ Indicators
MACD shows strengthening momentum: the histogram turned positive on 2025-09-02 as the MACD line crossed above its signal line. KDJ entered overbought territory (K: 82, D: 75, J: 96), but divergence is absent—price highs align with ascending indicator peaks. This confluence suggests near-term upside may continue, though overbought KDJ readings warrant caution for a pullback toward $98–$99.50.
Bollinger Bands
Bands narrowed sharply in late August (bandwidth contraction to ~2.5%) before the recent expansion, reflecting breakout validation as price vaulted above the upper band. Current trading near the upper band ($101.20) indicates bullish momentum, though this positioning historically precedes short-term consolidation. The middle band (20-day SMA at $97.35) now acts as dynamic support.
Volume-Price Relationship
The 3.78% rally on 2025-09-03 occurred on 78% above-average volume (1.59M shares vs. 30-day avg: 1.1M), confirming bullish conviction. Recent volume expanded during rallies (e.g., 2025-08-22: +4.06% on 1.05M shares) and contracted during pullbacks, underscoring accumulation. This volume profile validates upward sustainability.
Relative Strength Index (RSI)
The 14-day RSI (65.7) hovers below overbought thresholds but trends upward from mid-August lows near 40. While not oversold/overbought, its steady ascent alongside price supports bullish alignment. Should RSI approach 70, historical resistance near $103 may trigger profit-taking, but divergence is presently absent.
Fibonacci Retracement
Applying Fibonacci to the March–April 2025 swing (high: $103, low: $74.84) identifies retracement levels at $85.84 (23.6%), $92.64 (38.2%), $98.14 (50%), and $103.64 (61.8%). The current price ($100.93) tests the 61.8% level, creating a pivotal resistance zone ($103–$103.64) where the July 2025 peak and Fibonacci converge. Breaching this area could catalyze an extension toward $110.
Confluence and Divergence Notes
Strong confluence exists at $103–$103.64 (Fibonacci, prior swing high, Bollinger resistance), making this a decisive resistance test. Bullish alignment across MACD, volume, and moving averages supports further upside potential near-term. No material divergences are observed; KDJ’s overbought status presents the lone caution but aligns with strong momentum indicators. Downside risk appears contained above $97.25 support absent volume-backed breakdowns.